Becoming unemployed suddenly can have devastating effects on you and your family and knowing how to cope with it doesn’t always seem possible. From the risks of stress and depression, to the simple fact you don’t have an income to cover your outgoings, there is a lot to consider as far as you and your finances are concerned. While same day loans UK services could be available in a financial emergency, this isn’t always possible without a full time job and so understanding how best to manage your finances is key – and we’ve pulled together five things you need to do to give you a head start.
Know What You Have
First thing’s first, you need to stop and work out what you do have. Whether its savings, a retirement fund, your final pay check or other smaller income amounts, knowing what you have from the very beginning could better help you prepare for organising how much of that will need to go towards your outgoings and how much you’ll have to spare to pay off necessary debts or to put towards finding new work.
Work Out How You’re Spending
Next, you need to work out how you’re currently spending and how that needs to change in order to better manage the money you have to last longer. Initially, it’s best to work out what the necessary outgoings are first. This can include anything from bills to mortgage payments and, of course, food and other utilities. Excess spending should also be documented, whether that’s your monthly subscription to Netflix or a morning coffee on the way to work. Next, it’s time to start cutting that down.
You’ll need to work out a realistic budget by cutting back on most of your unnecessary expenses. Subscriptions you don’t use, magazines you don’t really read and that gym membership you never utilise are all ideal ways to cut back on your outgoings. However, it’s also important that you don’t cut back on your entertainment spending completely. You need to keep your spirits up and avoid that aforementioned stress and depression, so try and reduce the cost of your entertainment without taking it away completely.
Avoid Any Major Purchases
This may seem obvious, but now really isn’t the time to invest in that expensive purchase you’ve had your eye on. You might want that new car or those expensive jeans, but if they aren’t necessary it’s best if they’re kept as a dream for another day. Instead, put your money towards paying off credit card debts or consolidate your loans into one monthly payment with a lower interest rate where possible.
Try And Find Part Time Work
While you may feel like you’ve been kicked to the curb, it’s important to get back up again and get searching. If you just need money to keep you going until you can get back into full time work, why not opt for a part time remote job, or working for a company such as Uber or Deliveroo? These companies are constantly looking for new employees and you’ll often have the opportunity to work as much or as little as you like.
Losing your job has the potential to have devastating effects, but hopefully with our guide above, you can better manage the money and the finances that you do have. Good luck.